Venture Capital Fund Group 11 has teamed up with StepStone to acquire 27% of Group 11's third fund

Venture Capital Fund Group 11 has teamed up with StepStone, a global investment firm specializing in private markets, to execute a $ 50 million transaction to acquire 27% of Group 11's third fund. The transaction was executed directly and without intermediation.
The deal allowed investors in Group 11's third fund (year of establishment 2017) to realize their investments from a relatively early stage in the life of the fund. The investors participating in the transaction received a return of 3.25x from the original investment, which represents an annual internal rate of return of 41%.
Group 11 was founded in 2012 by Dobby Frances with the aim of empowering talented entrepreneurs who have set themselves the goal of revolutionizing the outdated financial services industry. The firm has invested in the early stages of some of Silicon Valley's most prominent financial technology companies. The cumulative value of Group 11's investment portfolio is approximately $ 1.6 billion.
The portfolio of Group 11's third fund includes Tipalti, which recently raised $ 270 million at a value of $ 8.3 billion; TripActions, which recently raised $ 275 million at a value of $ 7.25 billion; Next Insurance, which recently raised $ 250 million at a value of $ 4 billion; HomeLight, which recently raised $ 100 million at a value of $ 1.6 billion; And Sunbit, which recently raised $ 130 million at a value of $ 1.1 billion.
"We are excited to partner with StepStone on this deal, which we believe is further confirmation of Group 11's position as one of the world's leading fintech funds. This is just the beginning of a wonderful and fruitful partnership," said Dobby Frances, a founding partner in Group 11.
'Such a large liquidity event in the middle of a venture capital fund's life is a rare occurrence. I would like to congratulate Group 11 on an impressive portfolio and exceptional return on investment data, "said Roi Kadosh, Investment Manager of the training insurance company that sold part of its holdings in Fund 3 as part of this transaction. "Dobby Frances 'fintech thesis is brilliant and the funds' performance is impressive, so training has invested in all of Group 11's funds, starting with the third fund established five years ago. Group 11 is one of our best investments and especially the best fintech partner we could wish for in light of the firm's impressive growth all over the world. "
"We are pleased with the new partnership with Group 11 as our goal is to build quality investment portfolios for our clients," StepStone said. "Group 11's performance history and portfolio are very impressive, and we look forward to working with the firm's management team."
The deal with StepStone closes a few months after Group 11 completed a $ 200 million fundraiser for its fifth fund - double the original fundraising target of just $ 100 million. Among the Israeli institutional investors in the Fifth Fund are Harel Insurance and Finance, Mor Investment House, Menora Mivtachim, the Migdal Group and the Hachshara Insurance Company.
 Group 11 invests in revolutionary software companies that are redesigning the landscape of the financial services industry. While the fintech industry continues to gain momentum and disrupt the industry's traditional value chain, Group 11 has positioned itself as the preferred partner to provide capital and guidance to entrepreneurs setting up the next generation of companies that will lead the financial services industry. Since its inception, the firm has invested more than $ 550 million in some of Silicon Valley's most prominent financial technology companies, including Papaya Global, Tipalti, TripActions, Next Insurance, HomeLight, Sunbit, Masterschool, Sorbet, EquityBee, Venn, Lili, and more.